The Infinity Lithium Corporation Ltd (ASX: INF) share price plummeted in morning trade. The fall came after the company announced its appeal against the cancellation of the San José Lithium Project's investigation permit has been unsuccessful.
Right now, Infinity Lithium shares are 19.64% lower than their previous close – swapping hands for 11.3 cents.
Let's take a closer look at the news driving the Infinity Lithium share price down today.
Image source: Getty Images
Quick refresher on San José
Located in Spain, San José is one of Europe's largest lithium deposits.
San José is a joint venture project between Infinity Lithium and Valoriza Mineria S.A..
Infinity Lithium holds 75% of the project.
Why is the Infinity Lithium share price falling today?
The Infinity Lithium share price is plunging lower today after it was unsuccessful in its appeal against the cancellation of San José's Investigation Permit Valdeflórez (PIV).
The permit was cancelled in May by the General Directorate of Industry, Energy and Mines of the Regional Government of Extremadura (Junta) due to concerns the project is too close to a township.
According to Infinity Lithium, it was illegal for Junta to cancel San José's PIV.
The company has employed lawyers and will take the decision to an administrative-contentious appeal process.
Additionally, the company's Investigation Permit Ampliacion Valdeflorez (PIAV) has been appealed against by a non-government organisation. Fortunately for Infinity Lithium, the appeal has been dismissed.
Commentary from management
Infinity Lithium's CEO and managing director Ryan Parkin commented on the company's plans to fight the PIV's cancellation:
We reiterate our commitment to absolute legality in the process of resolving the multiple administrative inconsistencies and applications of judgements by the Junta. The Junta, for its part, has shown arbitrary discretion and contradictions between the original grant of the Investigation Permit and its recent change of position. The administrative and legal resolution in the face of the same facts cannot change its criteria to suit political endeavours and the company is confident of a positive resolution under the rule of Spanish law.
Infinity Lithium share price snapshot
Today's fall has added to the woes of the Infinity Lithium share price.
Right now, Infinity shares are 27% lower than at the beginning of the year. However, they have gained 31% since this time last year.
The company has a market capitalisation of around $45 million, with approximately 402 million shares outstanding.
